Standards Development

Scope

This PAS specifies requirements for the assessment, governance, documentation and communication of sustainable funds.

NOTE This relates to individual funds whether investment is held in a single asset type, multi-asset or portfolio of funds, unless indicated otherwise.

It covers requirements on the processes by which a fund is presented to the market, including:

- the documentation and implementation of sustainable investment strategies, including the naming of such strategies;

- communicating sustainable and related responsible investment-specific aims, objectives, outcomes and intentionality (e.g. explanation of the policies that influence investment selection decisions, intended impacts, outcomes, published fund objectives or other stated aims);

- communication of sustainable and related responsible investment-specific elements of the investment decision making and management process, including (but not restricted to) investment selection, stewardship activity, governance and ongoing monitoring;

- demonstrating governance of investment selection, management and review processes, including screening, asset selection and responsible ownership processes; and

- aiding the verification of sustainability-related elements of fund strategies, categorization and labelling.

It also covers requirements for the fund manager on how to:

- demonstrate to intermediaries (e.g. financial advisers and portfolio managers) and individual investors that a fund meets its published sustainability objectives and criteria; and

- respond to sustainable investment enquiries and complaints.

This PAS does not cover the accuracy of fund information and any supporting documents provided by fund managers, or how the validity of that information is to be assessed by potential investors.

This PAS is intended for use by fund managers, and might also be of interest to a range of intermediaries, including discretionary managers, wealth managers, portfolio planners, independent financial advisers, fund platforms and both retail and institutional investors.